Tax boost for racing’s turf war
RUSSELL GOULDRECORD levels of prizemoney in Victorian racing could be boosted further by a potential rise in the same tax that is fuelling the Racing NSW spending spree.
But while Racing Minister Martin Pakula hinted at an increase when the point of consumption tax is reviewed, Racing Victoria is already budgeting on its response to the $45 million NSW splurge.
Armed with nearly double
the funds Victorian racing receives from the point of consumption tax, a state tax on revenue from all bets laid, Racing NSW chief executive Peter V’landys has embarked on a bold growth mission which has significantly encroached on the Melbourne spring carnival.
The $14 million Everest at Randwick, the world’s richest race on turf, has been moved to Caulfield Cup day and the new $7.5 million Golden Eagle will run at Rosehill on Victoria Derby day.
This week Victoria Racing Club announced its own prizemoney increase for the Melbourne Cup, taking it to $8 million.
Further announcements about not just the Melbourne spring carnival but also the Victorian racing program are also expected, and more prizemoney boosts are likely.
“We are currently undertaking our annual planning and budgeting for the 2019-20 season and any changes or enhancements would be announced in due course,” a Racing Victoria spokesperson said.But the flagged changes to the point of consumption tax, which came in to force on January 1, could boost funds going to the racing industry and have other flow-on effects.
“The government has committed to a review of the point of consumption tax prior to December 2020 and we’ll be actively engaged to ensure that the best outcomes are achieved for Victorian racing,” the RV spokesperson said.Victorian has the lowest point of consumption tax rate at 8 per cent of revenue from wagers and bets laid, with 1.5 per cent of that going back to the racing industry.
But of that 1.5 per cent, the Victorian industry also covers the difference between the previous tax paid by TAB operators and the new tax.
So PVL is not that smarter than RVL, it just punters in NSW are taxed more on the POC Tax.